Hello friends,
please help to solve the following query
in case a pvt. ltd. company fails to deduct t.d.s. on any interest paid to any unsecured depositor then whether such amount of interest paid on such loan will be added back to company profits, or whether these will be allowed as expenditure?????
thanking in anticipation
Yes if the amount of interest exceedsRs.5000 during the year then it will be disallowed
In case of failure to deduct tax at source the following provisions of IT act 1961 will get attracted.
-40a(ia) Dissallowance of specific expenditure (while computing the income of
the deductor) if tds is not deducted from the Payment.
in addition to dissallowance the following penality interest provision will also get attracted.
-201(1) May demand tax equal to tax amount deductible but not deducted.
-201(1A) Interest @ 1 % p.m. of tax deductiable.
-271C penality equal to the amount of tax deductible but not deducted.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
